Saudi Arabia's Public Investment Fund has given Uber $3.5 billion cash, one of the biggest investments in a privately held start-up. Investments from sovereign wealth funds (like Saudi Arabia's) brighten Uber's horizons. Unlike venture capitalists -- who hastily cash out their investments after 7-10 years -- the Saudi's investment is far the long-haul, rooted in the prospects of long-term growth.
Saudi Arabia is but one country fueling Uber's boom. Amidst a worldwide push for increased urban mobility, Uber is becoming a multinational presence and "must-have" for developed countries.
Currently, Uber is reportedly worth $62.5 million, making it Silicon Valley's most valuable pre-I.P.O. company. Its rivals are Curb, Lyft, Grab,and Ola -- the latter three partnered with China's Didi Chuxing in efforts to compete with Uber.
Indeed, Uber has become a global powerhouse whose primary competition necessitates conglomeration as a means of survival.
To better grasp the scope of Uber's financial stance, realize that their stock (at proposed market value of $62.5 billion) is worth $10 more than General Motors and twice as much as Tesla.
Central to Uber's success has been the company's ability to obtain capital. Since inception, Uber has collected upwards of $11 billion in investments, fueling its rapidly expanding global operations. Currently, Uber operates in 460 cities across 69 countries.
In efforts to become a multi-national powerhouse, the transportation company needs every drop of capital it can muster -- international competition is tough.
For instance, plans to establish Uber as China's main ride-hailing service face strong resistance, where Didi Chuxing dominates the market -- the two companies are engaged in a subsidy war that is costing Uber millions.
In the Middle East, there is noticeable growth-- last year, the region was home to 19,000 active Uber drivers. This year, that number exceeds 395,000, and will continue to grow -- in coming years, Uber plans to invest $250 million in the MIddle Eastern market. Currently in the Middle East, Uber operates in 15 cities and nine countries, including Saudi Arabia.
Interestingly, Uber may have found itself a very niche market in Saudi Arabia. Because of religious edicts issued by conservative Muslim clerics, Saudi women are prohibited from driving.
Uber spokespeople acknowledge that women have the right to drive (and perhaps that anything to the contrary is sexist). But such is in Saudi Arabia. To say the least, Uber is generating substantial revenue by providing women with much desired self-mobility -- roughly 80% of the country's Uber riders are women.
Regardless of whichever country is investing in Uber, one thing is for certain: if the world-wide demand for urban mobility continues, Uber should cash in handsomely.
